The Global Construction Equipment Market size is expected to reach $136.7 billion by 2027, rising at a market growth of 3.5% CAGR during the forecast period.
Construction equipment is specialized machinery that is used to carry out construction tasks. This equipment can perform various tough and heavy-duty tasks such as drilling, hauling, digging, paving, and grading. Construction, manufacturing, infrastructure, and oil and gas industries are the key users of the construction equipment.
The rising emphasis on public-private partnerships is expected to be one of the causes driving the growth of the construction equipment market. These collaborations refer to a joint venture between the private sector and the government for the construction of public infrastructure. A private firm manages a project and contributes technical and operational knowledge to government programs in this sort of partnership. Additionally, as the world's population grows, the demand for infrastructures such as housing and transportation also increases, therefore, the demand for these machines is expected to rise due to an increase in construction activities around the world. Moreover, government programs, like stimulus packages, that encourage people to buy new homes, as well as reduced mortgages, are likely to increase the growth of the market.
Excavators are a crucial and commonly utilized type of construction equipment. The primary function of these machines is excavation, but they are also employed for a variety of other tasks such as demolition, heavy lifting, river dredging, and tree cutting. A cabinet and a long arm are included in excavators. A long arm digging bucket is also given at the end of the machine, and a cabinet is provided for the machine operator. This entire cabin design can be rotated up to 360 degrees, making it easier to operate. Wheeled excavators and tracked excavators are now widely available for people all over the world.
Another form of soil excavating apparatus is bulldozers, which are leveraged in the process of removing the topsoil layers up to a certain depth. The sharp-edged large metal plate offered at its front is used to remove soil. Hydraulic pistons are commonly used to decline and incline this plate. These are commonly used to remove weak soil and rock strata, lift soil, and various other purposes.
The COVID-19 pandemic posed a significant challenge in front of various economies across the world. Various businesses were majorly hampered due to the outbreak of the coronavirus. In addition, governments across all the countries were forced to enforce lockdowns over their countries, due to which, all the businesses were sent under a temporary closure. Owing to this, the supply of various goods and services was regulated. Moreover, due to the travel restrictions imposed by governments, the worldwide supply chain was majorly devastated. The COVID-19 pandemic also had a major impact on the construction equipment sector. Due to the lockdown, construction activities around the world were majorly halted. The majority of the construction projects were canceled or postponed. Containment policies led to a significant drop in economic activity.
The construction equipment market is being transformed by electrification, which presents a substantial opportunity and design options for various equipment across the market. Electrification has been rising in various market segments, including construction equipment, such as cars, buses, and other vehicles. This has been made feasible by the rising development and increasing affordability of modern technology and machinery, as well as the enforcement of pollution restrictions, which have altered the future of the construction equipment business. Several cities throughout the world have imposed prohibitions on the utilization of diesel within their boundaries, affecting construction equipment operations in certain areas. In China and Europe, stronger emission standards for heavy machinery, as well as equipment, are being imposed at the global, regional, and municipal levels.
Rental services are significantly gaining the traction of consumers in the worldwide construction equipment industry these days. According to the Construction Equipment Rental Association (CERA), emerging and most populated economies are expected to see increased demand for rental services. Regional and local rising firms are anticipated to build a position in the leasing service industry, generating substantial revenue from their local customer base. In order to benefit their business and customers simultaneously, construction companies focus on sectors such as general infrastructure, utility, and electrical, oil and gas, as well as commercial and residential development.
This Global Technical Regulation (GTR) aims to provide a globally harmonized method for determining the levels of gaseous compound emissions, particulate matter emissions, particle number emissions, CO2 emissions, electric energy consumption, fuel consumption, and electric range from light-duty vehicles. Engine and equipment manufacturers have pressed regulatory agencies in various nations to standardize global emission standards in order to ease engine development and emission type approval or certification for diverse markets. For example, the California Air Resources Board (CARB) has harmonized California GHG standards with EPA Federal standards, allowing manufacturers to establish compliance with California requirements by demonstrating compliance with the 2017 to 2025 EPA Federal criteria.
Based on Product, the market is segmented into Earth Moving Machinery, Material Handling Machinery, and Concrete & Road Construction Machinery. In 2020, the material handling machinery segment witnessed a substantial revenue share of the construction equipment market. Material handling equipment is mechanical machinery that moves, stores, controls, and protects materials, goods, and products during the manufacturing, distribution, utilization, and disposal processes. In addition, within the confines of an organization, material handling equipment is utilized to move bulk, packaged, and individual products. This equipment are leveraged in order to increase the efficiency of material flow, improve safety & working conditions, and reduce material handling costs. Hence, the growth of this segment is rapidly increasing.
Based on Earth Moving Machinery Type, the market is segmented into Excavator, Loader, and Others. The increasing growth of the segment is owing to the fact that infrastructure projects are booming all over the world, due to which, builders and contractors are widely using traditional heavy-duty excavators to make dams and roadways. Moreover, an excavator is a big, diesel-powered construction machine that uses its bucket, which is placed on the front of the machinery, to dig trenches, pits, and foundations in the ground.
Based on Material Handling Machinery Type, the market is segmented into Crawler Cranes, Trailer Mounted Cranes, and Truck Mounted Cranes. In the material handling machinery segment, trailer-mounted cranes accounted for a significant revenue share of the market. Boom cranes installed on trailers are ideal for delivering and placing the largest and bulkiest goods. They are a practical option to hauling as well as setting non-divisible goods that are too big for cranes mounted on trucks. Therefore, the growth of the market is increasing owing to this factor.
Based on Concrete & Road Construction Machinery Type, the market is segmented into Concrete Mixer & Pavers, Construction Pumps, and Others. Concrete mixers & pavers registered the largest revenue share of the market. A concrete mixer, also called a cement mixer, is a machine that mixes cement, aggregates, such as sand or gravel, and water in a uniform manner to make concrete. A spinning drum is used to blend the components in a standard concrete mixer. Portable concrete mixers are significantly being utilized for small-scale projects to ensure that the concrete can be mixed on the job site, enabling workers a plenty of time to utilize it before it hardens.
Report Attribute | Details |
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Market size value in 2020 | USD 109.3 Billion |
Market size forecast in 2027 | USD 136.7 Billion |
Base Year | 2020 |
Historical Period | 2017 to 2019 |
Forecast Period | 2021 to 2027 |
Revenue Growth Rate | CAGR of 3.5% from 2021 to 2027 |
Number of Pages | 277 |
Number of Tables | 444 |
Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
Segments covered | Product, Region |
Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
Growth Drivers |
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Restraints |
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Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2020, North America garnered a significant revenue share of the construction equipment market. An increase in the number of people living in their own residencies. According to the United States Census Bureau, expenditure on construction increased by 5.8% in January 2021, resulting in a rise in equipment demand in 2021. Moreover, in the first few quarters of 2022, increased rental utilization of earthmoving equipment, particularly mini-excavators and small truck loaders, is predicted to raise the demand for new equipment among rental companies.
Free Valuable Insights: Global Construction Equipment Market size to reach USD 136.7 Billion by 2027
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Volvo Group and Caterpillar, Inc. are the forerunners in the Construction Equipment Market. Companies such as Terex Corporation, Komatsu Ltd., Zoomlion Heavy Industry Science & Technology Co., Ltd. are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Caterpillar, Inc., Kobelco Construction Machinery Co., Ltd. (Kobe Steel, Ltd.), Komatsu Ltd., Liebherr-International AG, Sumitomo Heavy Industries, Ltd., Terex Corporation, Volvo Group, Zoomlion Heavy Industry Science & Technology Co., Ltd., Hitachi Construction Machinery Co., Ltd. (Hitachi ltd.), Hyundai Heavy Industries Co., Ltd. (Hyundai Construction Equipment Co., Ltd.)
By Product
By Geography
The global construction equipment market size is expected to reach $136.7 billion by 2027.
Increasing penetration of electric and autonomous construction machines are driving the market in coming years, however, lack of harmonized emission regulations limited the growth of the market.
Caterpillar, Inc., Kobelco Construction Machinery Co., Ltd. (Kobe Steel, Ltd.), Komatsu Ltd., Liebherr-International AG, Sumitomo Heavy Industries, Ltd., Terex Corporation, Volvo Group, Zoomlion Heavy Industry Science & Technology Co., Ltd., Hitachi Construction Machinery Co., Ltd. (Hitachi ltd.), Hyundai Heavy Industries Co., Ltd. (Hyundai Construction Equipment Co., Ltd.)
Due to the lockdown, construction activities around the world were majorly halted. The majority of the construction projects were canceled or postponed.
The Earth Moving Machinery segment acquired maximum revenue share in the Global Construction Equipment Market by Product in 2020; thereby, achieving a market value of $85.2 billion by 2027.
Asia Pacific is the fastest growing region in the Global Construction Equipment Market by Region in 2020, and would continue to be a dominant market till 2027.
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